Stock of the week: “Netflix Inc”
20th of April 2023
Netflix, Inc. engages in providing entertainment services. It also offers a broad set of activities for leisure time, entertainment video, video gaming, and other sources of entertainment.
The streaming company recently announced lower-than-expected growth expectations in its first-quarter results. However, UBS analysts believe the company is poised to accelerate again, thanks to a more streamlined competitive environment in the direct-to-consumer (DTC) space and improved monetization through new password-sharing and advertising initiatives. UBS raised its rating on Netflix to Buy from Neutral and increased its price target to $390 from $350. Analysts expect revenue growth to bottom out in the second quarter of 2023, then grow 10 percent in the second half of 2023 and 12 percent or more next year. In addition, expected price increases for rival streaming services and advances in ad-supported subscriptions and password-sharing restrictions could further support Netflix's growth.
Financial social media sentiment is “positive” in both absolute and relative terms, on its own and when compared to the social media sentiment of the sector and stock index.
Analyst consensus is to "buy" the stock - out of the 45 bank analysts covering the company, 22 recommend buying the stock, 20 suggest holding it, and 3 suggest selling it. The median upside potential of the stock price these analysts expect over the next 6-12 months is currently 11.92% (reference close of business 19/04/2023).
Attention buzz is currently “high”.
Sources:
https://www.barrons.com/articles/netflix-stock-upgrade-disney-plus-paramount-discovery-49a94243
